A popular crypto analyst anticipates a major relief rally for Bitcoin (BTC) amid the uncertainties in the market.
In a new strategy session, Nicholas Merten tells his 515,000 YouTube subscribers that more people are now willing to buy Bitcoin as the flagship cryptocurrency sees a massive sellout.
0:36 “We do believe that an extended bear market could still play out, we do believe in the reality that there is likely going to be a relief rally in the market like there has been in the past and it simply has to do with the fact that now that a lot of sellers have been forced out of the market, we now likely have more buyers than sellers at these prices.”
From Bitcoin’s current price of $21,135, the analyst says that the crypto asset may rally to as high as $30,000.
04:25 “If we can get price above these moving averages and turn them into support, after that we’ve potentially got a major move to the upside something in the upper $20,000 range going from $25,000 to $30,000.”
Merten says that Bitcoin has been trading sideways for a month now, which suggests that it could soon make a serious move just as it did in May after a long period of price consolidation.
04:58 “You’ve got a lot of longs and a lot of shorts in either of these channels and if price starts to go substantially in the other direction, especially getting above this channel you’ve got a whole lot of shorts not just from this channel and also this channel, who could very well be taking significant losses or for the people in this channel, be underwater and potentially get liquidated causing a massive short squeeze to the upside.”
05:26 “That’s what we need to look out for and why we need to understand that derivatives can drive markets in dramatic directions to the downside and also to the upside. I would say take this decline here as an example. If you think it can’t happen to the upside, think again. It can very well happen here. There are much more shorts in this market than longs.”
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